Real estate investing is about leverage. Getting the highest return on investment often means putting the least amount of capital into the project. This means that the real estate investor must be comfortable with borrowing money in order to finance a project.
Fixing and flipping residential real estate as an investment strategy can be a fraught proposition even for someone who has done their homework. Among the most unpleasant surprises is to learn that an investment property being renovated has been burglarized.
There are different appraisal methodologies for different types of real estate. Investment real estate is often valued under the Income Approach. This is a formulaic appraisal method that divides the anticipated income from the property by the capitalization rate.
According to MarketWatch, real estate is the fastest growing segment in crowdfunding. In fact, it is expected that real estate crowdfunding (RECF) will create $500 billion or more in funding and generate $3.2 trillion in value each year by 2020.
Due diligence is a fact of life. Everyone must learn how to analyze and judge an opportunity, whether it be a real estate investor looking at funding a particular project, a borrower deciding which lender to raise capital from, or a marketplace lending platform presenting investment opportunities to accredited private investors.
Sharestates joined up with Orchard Platform, Wunder Capital, Lendit, and SeedInvest on April 25th, 2017 in New York City for the Alternative Investing Meetup (NYC Marketplace Lending Meetup.) Speakers at this meetup were Kevin Shane; Sharestates, Todd Anderson; LendIt, Matt Burton; Orchard, Bryan Birsic; Wunder, and Aaron Kellner; SeedInvest.
The real estate market can often come across as a black box of investing. Especially after the subprime mortgage crisis of 2007-2010, there has been a persisting level of wariness as it relates to real estate. Since that recession, real estate values have been on the rise, especially in metropolitan areas.
There are many factors that affect real estate investment risk and loan to value (LTV) is just one of them, but it’s a very important one. If you take out too much loan relative to the risk, not only will you not see as large a return on your investment as you might have, but you may end up losing your entire investment.
Buyers want homes with modern, updated features. The same is true for office spaces. There are several office renovations that will help sell your property faster. Some makeovers include installing the latest wireless devices, charging stations, and ergonomic desk designs.
Agree or disagree with the First 100 Days milestone, it continues to be a measuring stick against which progress is evaluated for a new administration. It serves as a marker for assessing the health of each industry and real estate market is no different.